Dare Inquire Representatives Truth
ISSUE: KEYSTONE OPPORTUNITY ZONE
2-MINUTE STATEMENT PRESENTED TO FAYETTE COMMISSIONERS
July 22, 1999
Bold lettering totals 2-minute statement. Reference links are what you should know about KOZ
Update 2000:
Hospital challenges constitutionality of KOZs!!
STATEMENT TO FAYETTE COMMISSIONERS
Dare Inquire Representatives Truth
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Enclosed you will find several pages which are referenced on the website for Dare Inquire Representatives Truth.
These webpages contain links to the actual KOZ legislation and the Pennsylvania state Constitution.
Should you have any questions about this material, please contact me.
My concerns about KOZ are outlined on the website. A summary follows.
Please note Pennsylvania Constitution Section 1 Article VIII and Article VIII Sections 2, 5, and 6.
In particular, my concern is that the section 2 (b) subsection (iii) phrase stating... by which local taxing authorities may make uniform special tax provisions applicable to a taxpayer... has not been followed with the KOZ legislation.
Because separate zones have been designated as permitting 100 percent tax abatement on real property tax, the local taxing authority, you, cannot "make uniform special tax provisions" for its entire taxing jurisdiction for real property taxation.
In the case of the county of Fayette, these KOZ zones in fact appear to prevent the Fayette County commissioners from adhering to their oath of office. That's why this is so crucial.
For those commissioners who will look into this matter, the effort is much appreciated.
Please send me a copy of your letter to the state officials.
3-MINUTE STATEMENT PRESENTED TO FAYETTE COMMISSIONERS
April 8, 1999
Bold lettering totals 3-minute statement. Reference links are what you should know about KOZ
Dare Inquire Representatives Truth
Remember last December when Fay-Penn presented the KOZ plan
to the board two citizens asked what would prevent a company
from moving out before the 12 years, or after? You responded
that there was a provision in the legislation that covered that.
But here it - isn’t.
The legislation says nothing about a company that takes advantage of all the KOZ tax exemptions and moves on out of Fayette County after five years. The legislation only addresses companies that relocate from the KOZ within three to five years. Then it’s a 66 or 33 percent payback to the state, and locally, the county.
Reference FYI
Section 902. Recapture.(a) General rule.
If any qualified business located within a keystone opportunity
zone has received an exemption, deduction, abatement or credit
under this act and subsequently relocates outside of the zone,
that business shall refund to the State and political subdivision
which granted the exemption, deduction, abatement or credit
received in accordance with the following:
(1) If a qualified business relocates within three years from the date of any claim, 66% of all the exemptions, deductions, abatements or credits previously received due to that qualified business's participation in the keystone opportunity zone shall be refunded TO THE COMMONWEALTH AND THE POLITICAL SUBDIVISION.
(2) If a qualified business relocates within three to five years from the date of any claim, 33% of all exemptions, deductions, abatements or credits previously received from participation in the keystone opportunity zone shall be refunded TO THE COMMONWEALTH AND THE POLITICAL SUBDIVISION.
Reference FYI
Section 902. Recapture.(a) General rule. (3)
If the qualified business was located within a facility
operated by a nonprofit organization to assist in the creation
and development of a start-up business, no exemption, deduction,
abatement or credit shall be refunded.
There are other waivers
in the legislation for no pay when the business doesn’t stay:
natural disaster, unforeseen industry trends, or loss of a major
supplier or market.
So for the fiber factory, the unforeseen
could wipe the slate clean. New business - companies - come on in
to Fayette County. You could look at us and see an opportunity
to build or locate here in a tax free zone that could save you
millions of dollars. Leave after 12 years of tax exemptions, you
may not have to pay us back a dime.
The controlling legislation is the state legislation. You’ve
already passed the required formal, binding ordinance or
resolution that specifically provides for all local tax
exemptions, deductions, abatements or credits for persons and
businesses.
Reference FYI
Section 702.
So residential and commercial - if you’re in the zone, or move into
the zone any time during the 12 years, this county amendment
does nothing to preclude you from seeking the property tax
exemptions, income tax exemptions, and other exemptions.
Reference FYI
Section 702. Real property tax.(c) Application for tax abatement.--
Any person requesting real property tax abatement pursuant to ordinances or resolutions adopted pursuant to this act shall
notify each political subdivision COUNTY OR OTHER DESIGNATED ASSESSMENT OFFICE granting such abatement in writing on a form provided by that political subdivision ASSESSMENT OFFICE within 30 days of the designation as a keystone opportunity zone or within 30 days of the transfer of ownership of the real property subject to abatement. A copy of the abatement request shall be forwarded by the political subdivision to the board of assessment or other appropriate
assessment agency...
All you have to do is fill out a form, correctly.
The commissioners should share with us the knowledge of what
is in the original December Fay-Penn application before voting on
amending this resolution. How was this property listed on the
application?
The board should use its July 23 rules to amend the agenda
and require the solicitor to conduct a review of the
Constitutionality of KOZs concerning the 100% abatement of
local property tax on the whole KOZ properties before any
implementation by the chief tax assessor.
ACTIVISTS UNITE
Why should we bother to question our local and state representatives about the constitutionality of the Keystone Opportunity Zone legislation?
Local elected public servants and elected state representatives and senators take an oath to defend the Pennsylvania state Constitution. No other reason is necessary.
WHAT YOU SHOULD KNOW ABOUT KOZ
Herald-Standard articleFriday, July 23, 1999
Is it Constitutional
Ask Governor Ridge or state Rep. Ted Harhai how building a clinic and housing complex for the elderly in a KOZ produces industrial-type jobs?
Question This:
What did the commissioners know?
Question This:
PA Constitution Ignored?
KOZ Challenge
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